1109.24
Extending credit to executive officer - reports.

(A)
Except as
authorized by this section, no bank may extend credit in any manner to any of
its own executive officers. No executive officer of a bank may become indebted
to that bank except by means of an extension of credit the bank is authorized
by this section to make. Any extension of credit made pursuant to this section
shall be promptly reported to the bank's board of directors and may be made
only if all of the following apply:

(1)
The
bank would be authorized to make the extension of credit to other borrowers.

(2)
The extension of credit is on
terms that are not more favorable than those afforded to other borrowers.

(3)
The executive officer has
submitted a detailed, current financial statement.

(4)
The extension of credit is made on the
condition that it shall become due and payable on demand of the bank at any
time when the executive officer is indebted to any other bank or banks on
account of extensions of credit of any one of the three categories referred to
in divisions (B), (C), and (D) of this section in an aggregate amount greater
than the amount of credit of the same category the bank being served as an
executive officer could extend to the executive officer.

(B)
With the specific prior approval of its
board of directors, a bank may make a loan to any of its executive officers if,
at the time the loan is made, both of the following apply:

(1)
The loan is secured by a first lien on a
dwelling that is expected, after the loan is made, to be owned by the executive
officer and used as the executive officer's residence.

(2)
No other loan by the bank to the
executive officer under the authority of this division is outstanding.

(C)
A bank may make
extensions of credit to any executive officer of the bank to finance the
education of the executive officer's children.

(D)
A bank may make extensions of credit not
otherwise specifically authorized by this section to any of the bank's
executive officers in an amount prescribed by the superintendent of financial
institutions.

(E)
Except to the
extent permitted by division (D) of this section, a bank may not extend credit
to a partnership in which one or more of the bank's executive officers are
partners having, individually or together, a majority interest. For purposes of
division (D) of this section, the full amount of the credit extended shall be
considered to have been extended to each executive officer of the bank who is a
member of the partnership.

(F)
Whenever an executive officer of a bank becomes indebted to any bank or banks,
other than the bank served as an executive officer, on account of extensions of
credit of any one of the categories referred to in divisions (B), (C), and (D)
of this section in an aggregate amount greater than the aggregate amount of
credit of the same category that could lawfully be extended to the executive
officer by the bank served as an executive officer, the executive officer shall
make a written report to the board of directors of the bank stating all of the
following:

(1)
The date and amount of each
extension of credit by any other bank or banks to the executive officer;

(3)
The
purposes for which the proceeds of the extensions of credit have been or are to
be used.

(G)
This
section does not prohibit any executive officer of a bank from endorsing or
guaranteeing any loan or other asset previously acquired by the bank in good
faith, for the protection of the bank, or incurring any indebtedness to the
bank for the purpose of either protecting the bank against loss or giving
financial assistance to the bank.

(H)
Each bank shall include with, but not as
part of, each report of condition made to the superintendent pursuant to
section 1121.21 of the Revised Code, a
report of all loans made under the authority of this section by the bank since
the bank's previous report of condition.

(I)
Each day any extension of credit in
violation of this section exists is a continuation of the violation for
purposes of section
1121.35 of the Revised Code.